From - Ask the company for documents about its lawsuit history. Most reputable businesses will provide them.
- For a publicly traded company, look at audited financial statements at http://www.sec.gov/edgarhp.htm. Employ a trusted accountant, if necessary.
- Don't get excited by testimonials. Ask the company to provide proof of typical earnings. Walk away if there's no information in writing.
- Contact those invested in the business. The Federal Trade Commission requires most promoters to give you the names and numbers of participants.
- Check for complaints on Internet message boards and at consumer-protection agencies.
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When someone offers you a "once in a lifetime" business opportunity, it's easy to get your hopes up and let your guard down. Here are some tips for exposing scam businesses.
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